Does TUPE apply in circumstances where a company goes into voluntary liquidation and its business is closed with all employees being made redundant and then a buyer is subsequently found for the business, for example, a month or two later? Do the employees automatically transfer to the new owner?

Posted in : First Tuesday Q&A NI on 1 February 2011
Emma-Jane Flannery
Arthur Cox

Where a company is the subject of “bankruptcy or analogous insolvency proceedings” instituted with a view to liquidating its assets under the supervision of an insolvency practitioner, the employees will not be accorded the normal protections under TUPE in respect of the automatic transfer of their employment and associated rights, duties, powers and liabilities on a relevant transfer, nor the protections against detrimental changes to their contracts or unfair dismissal by reason of the transfer.

Therefore, the dismissed employees will not automatically transfer to the buyer when the

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Back to Q&A's This article is correct at 02/09/2015
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The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Emma-Jane Flannery
Arthur Cox

The main content of this article was provided by Emma-Jane Flannery. Contact telephone number is 028 9023 0007 or email Emma-Jane.Flannery@arthurcox.com

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